Newspaper ad revenue fell almost $2 billion in the third quarter for a record 18.1% decline, according to new statistics from the Newspaper Association of America.
The historic drop resulted from a worsening economy that sharply exacerbated long-term challenges already confronting the newspaper industry, and it affected all kinds of newspaper ads. National ad sales fell 18.4%, classifieds sank 30.9%, and the biggest category, retail, slid 11.7%. Newspapers’ online ad sales, where everyone is hoping some part of the future business model resides, accelerated their decline with a 3% drop. Online ad sales slipped 2.4% in the second quarter.
This fall’s financial collapse affected only some part of the latest results. However, the rest of the year is likely to look even worse.
“This is good news for our clients and our ability to leverage marketing budgets. We have a great opportunity to help our clients gain more market share without increasing budgets. Our focus has always been on small- and mid-size companies that are looking to grow their business. In an economy where the big boy’s and #1 ranked companies stop spending, they open the doors for their competitors, like our clients, to take control of their relative markets.” Says Craig Lloyd, principal Glint Advertising & Design.
Published: December 01, 2008 NEW YORK (AdAge.com) edited by Glint Advertising & Design